A nearly four-decade-long business partnership between The Detroit News and Detroit Free Press ended Sunday, pitting the newspapers against each other financially at a time when few other U.S. cities support two major papers.
Free Press owner USA TODAY Co., formerly known as Gannett Co. Inc., and MediaNews Group — owner of The News — in June opted against renewing the longstanding agreement, thus ending among the last such tie-ups in the country. The companies have not provided further reasoning behind the split.
The News announced Friday it will launch a Sunday edition Jan. 18, at which point it will once again print newspapers all seven days. Other changes include makeovers for the detroitnews.com website and mobile app, an updated print design and a refreshed eNewspaper, Editor and Publisher Gary Miles said. The changes are expected to take place during a roughly month-long transition period.
The end of the Detroit joint operating agreement (JOA) marks the end of an era in U.S. newspapers. Aside from a contentious Las Vegas partnership that was ruled invalid earlier this year, the Detroit JOA was the last major JOA still in existence, and the only one in which both newspapers emerged to print seven days and compete on all digital platforms.
“To the JOA’s credit, there are two newspapers to this day in metropolitan Detroit,” said Mark Silverman, who was editor and publisher of The News from 1997 to 2005. “So that’s clearly a positive. And both newspapers had very different editorial page positions. That’s a positive for a community.”
Joint operating agreements were cost-saving measures allowed by the Newspaper Preservation Act of 1970, which permitted two newspapers in the same city to merge their business operations to protect diversity in opinion and newsgathering. If approved by the federal government, the newsrooms continued to compete, but companies saved overhead costs associated with newsprint, printing presses and distribution.
“Even in the federal government, there was some understanding of the value of journalism and the value of preserving those voices,” said Carole Leigh Hutton, a former Detroit News editor and the Free Press’ former editor and publisher.
In virtually all cases outside of Detroit, newspapers concluded their partnerships with mergers, one partner shuttering its operations or the smaller paper dramatically curtailing operations.
Bitterly contested in court when it was first proposed in 1986, the Detroit joint operating agreement remains a subject of debate over whether it was a success, although its primary stated goal — preserving two editorial voices — was fulfilled.
“Ultimately, what it intended to do was to keep two papers in Detroit,” said the Poynter Institute’s Kelly McBride, who advises news organizations on best practices. “So yeah, I guess that means it was successful. Clearly, I don’t think Detroit would have two papers now if the (joint operating agreement) had not existed.”
But McBride and former editors of both papers said it’s difficult to separate the role of business partnerships in the survival or death of newspapers compared to the existential loss of funding widely blamed on digital advertising.
“It’s been a really tough environment for newspapers,” Hutton said. “And they have gone to online-only in a lot of places. Many have just gone away. So it’s not far-fetched to think it would have been tough to continue to have two nameplates in this particular area, and I think the JOA probably did keep two nameplates alive. But again, it’s hard to know.”
Ed Wendover, a former Plymouth newspaper publisher who fought the Detroit papers’ partnership in court, said the outlets survived in spite of their agreement. Free to compete on all levels without being tethered financially, the papers “would be stronger than they are today and have more circulation,” Wendover said.
Silverman expressed a similar sentiment, saying that “the business aspect of the JOA was a hindrance to both newspapers.”
“The positive was that it kept two newspapers going,” he said. “The negative was that the business staff tried to serve too many masters and didn’t serve either very well.”
In addition, a bitter newspaper strike marked the early years of the JOA, costing the publications both subscribers and brand loyalty.
“The mismanagement under the JOA drove readers away, and advertisers will always play follow-the-readers. It’s a double-edged sword seeing the JOA end,” Wendover said.
Why did the Detroit papers partner?
In the years before the joint operating agreement, The News and the Free Press were locked in a financially draining, “old-fashioned, intense newspaper war,” said The News’ editorial page editor Nolan Finley, who at the time worked as an editor on the paper’s city desk.
Lucrative ad sales were at stake, and advertising rates were based on circulation, said former News reporter Bryan Gruley, whose 1993 book “Paper Losses: A Modern Epic of Greed and Betrayal at America’s Two Largest Newspaper Companies” details the path toward the joint agreement. Both papers steeply discounted subscription prices to beef up readership numbers and increase the prices they could charge for ads.
“You couldn’t throw a stone in Detroit without meeting someone who got a free Free Press or a free Detroit News that they never paid for and that landed on their doorstep every morning,” Hutton said. “Everybody knew that was part of the war.”
In response, The News ― then owned by Gannett (recently renamed USA TODAY Co.) ― and the Free Press ― then owned by now-defunct Knight Ridder ― in 1986 filed for federal approval to merge business operations in a 100-year partnership, leaving separately owned and competitive newsrooms.
Wendover, the former Plymouth publisher, led opposition to the partnership and sued to block it. He said vying for permission from the Reagan administration reflected poorly on the newspapers’ editorial independence and would reduce journalistic competition between them.
Once the deal was before federal judges, scrutiny increased over claims that the Free Press was in imminent danger of failure if not for the agreement. The reason: federal law on joint-operating agreements required one paper to be failing.
“They were saying these are not failing newspapers,” said Gruley, who covered the legal battle. “They’re not failing because the economics are bad. They’re failing because they’re choosing to fail, knowing that maybe we can push the other guys out and then maybe we get the whole banana, the whole enchilada.”
The U.S. Supreme Court ultimately ruled 4-4 on the case, allowing the agreement to take effect in 1989. The pact was renegotiated as a 20-year deal in 2005 when newspaper ownership changed; Gannett bought the Free Press and sold The News to MediaNews Group.
“I remember that when it came about, it was a matter of survival,” said U.S. Rep. Debbie Dingell, D-Ann Arbor. “And I think local media matters. I think it’s important that there are two newspapers with different perspectives, and I’m someone that thinks we need more media, not less. People need to be able to go to places where you can really get the facts. And I hope both papers survive.”
Although the rise of digital advertising at the expense of newspapers wasn’t what prompted the tie-up, former Free Press publisher Dave Hunke said the timing of the agreement was unwittingly prescient.
“The JOA was necessary from an economic standpoint to keep two newspapers in place,” Hunke said. “We were within a couple of years heading into the deepest financial crisis this country had seen since the Great Depression, and the business was not good.”
The role of journalism and how to pay for it
The papers’ upcoming split once again raises questions about the market for two dailies and whether current economics can support both outlets.
“People wanted two fiercely independent competitive newspapers in that town,” said Hunke, who became president of the joint business operations when the partnership was reconstituted in 2005. “People wanted their newspapers. And they wanted them competitive, and they wanted them separate.”
Throughout the agreement, Detroit maintained its rare status as a two-paper town.
“It kept two fairly strong newspapers in Detroit with opposing … editorial page viewpoints,” Finley said. “So we’re the only market you could say that about in the country, where you have two competitive, fairly equal newspapers, one on the right (and) one on the left that people can choose from.”
Silverman said both papers served readers well during the JOA.
“The News always had a certain journalistic personality embodied by its name: The News,” he said, adding that during his time in Detroit, the Free Press was known as “the friendly Freep.”
Both newspapers won Pulitzer Prizes during the partnership and “changed lives in the community,” Hutton said. She cited coverage of former Detroit mayor Kwame Kilpatrick, who was convicted 12 years ago of federal racketeering and tax evasion charges after being accused of running a criminal enterprise out of City Hall, rigging bids and pocketing more than $840,000 in bribes and kickbacks.
“Even though there’s a whole political entity out there that likes to trash it and say that journalism is harmful and anti-American, it’s quite the opposite,” she said. “If you think about it, journalism is about preserving the ideals and making sure that people know what’s happening because it’s our money, and it’s our government, and it’s our right, and it’s supposed to be our decision. And it’s just not possible for the average person to oversee what’s happening in the world the way journalists should be overseeing it for them.”
Leadership at The News has said the split will allow the outlet to operate more closely with its sister papers in Detroit’s suburbs, including the Oakland Press, the Macomb Daily, the (Southgate) News-Herald and others, which share the same ownership as The News.
Hutton said the success of the papers “all comes down to: What do the advertisers think?”
“You got to unlock the business solution, somehow,” Hunke said. “But you cannot take the shortcuts on the news side. Good journalism, in the end, I swear it will win. I just wish somebody could find a way to unlock the economics.”
Staff Writer Grant Schwab contributed.
